If you are facing a home foreclosure, property repossession or wage garnishment due to an unexpected death, medical crisis, divorce, high credit card bills or job loss, you are not alone. Millions of Americans have found themselves in a similar financial crisis and have found financial relief by filing bankruptcy.
If you live in Oakland, California, and you are considering filing bankruptcy in Oakland, an Oakland bankruptcy lawyer can help answer your bankruptcy questions and determine if you are eligible for Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Filing Chapter 7 bankruptcy in Oakland may allow you to discharge part or all of your debt by liquidating non-exempt assets and using the money from the liquidation to repay your debts. Filing Chapter 13 bankruptcy in Oakland does not immediately discharge your debts but may allow you to reorganize your debt with a bankruptcy repayment plan.
Filing bankruptcy is a very important financial decision which can affect your credit score and your ability to qualify for credit. It is important to discuss your financial situation with an Oakland bankruptcy attorney before filing personal bankruptcy.
Filing Chapter 7 Bankruptcy in Oakland
Filing Chapter 7 bankruptcy in Oakland may allow the filer’s debts to be discharged within four to six months of declaring bankruptcy. All Oakland residents who are considering filing bankruptcy should contact an Oakland bankruptcy lawyer to determine if they qualify to file Chapter 7 bankruptcy.
If the Oakland attorney determines they are eligible for Chapter 7 bankruptcy the attorney will file the bankruptcy petition in bankruptcy court. The court reviews the petition to ensure it meets the standards outlined in the current bankruptcy code and schedules the 341 Creditor’s Meeting. A trustee is assigned to the bankruptcy case and is responsible for selling the filer’s assets and using the proceeds from the sale to repay the filer’s creditors. After all of the non-exempt assets are sold and the creditors are paid, the remaining qualifying debt is discharged.
Filing Chapter 13 Bankruptcy in Oakland
Filing Chapter 13 bankruptcy in Oakland does not immediately discharge debt, but it will allow the filer to restructure their debt into a three to five year repayment plan. Filing Chapter 13 bankruptcy also allows the filer to keep their assets and avoid liquidation which may be preferable for many filers who have a lot of property and assets.
To qualify for Chapter 13 bankruptcy, the filer’s unsecured debt must be no more than $807,750 and their unsecured debt must be no more than $269,250. Filers must also have a steady income which they can use to make the required payments for the bankruptcy repayment plan. Chapter 13 bankruptcy can take from three to five years to complete.
Personal Debts Not Eliminated By Filing Personal Bankruptcy
Debts not discharged by filing personal bankruptcy in Oakland are determined by federal bankruptcy laws and will be the same in Oakland as in all other American cities. Filing Chapter 7 or Chapter 13 bankruptcy in Oakland does not discharge the following debts:
- Most back taxes
- Child support and alimony payments
- Certain student loans
- Purchases of luxury items within ninety days of filing personal bankruptcy in Oakland
- Fines owed to federal or California government agencies
- Debts generated from fraudulent activity
- Recent cash advances of $825 within 70 days of filing personal bankruptcy